June 08, 2012 09:38 AM Eastern Daylight Time
Best’s Briefing: MENA Insurers and Reinsurers Show Resilience Despite Regional Developments
LONDON–(BUSINESS WIRE)–Insurers and reinsurers in the Middle East and North Africa (MENA) region have shown resilience in the past year, with all A.M. Best Co.-rated entities continuing to maintain secure ratings, according to a new report by A.M. Best. Analysis of the distribution of ratings over the past 12 months shows that despite the continuing uncertainty in MENA territories after the Arab Spring of 2011, there has been no dramatic downward shift in ratings. This is based on A.M. Best’s ratings of insurers and reinsurers in Algeria, Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Tunisia, Turkey and the United Arab Emirates (UAE).
During the past 12 months, the number of A.M. Best-rated entities in MENA territories has grown significantly, from 25 (re)insurers to 35, representing a 40% increase. The percentage of companies with a financial strength rating (FSR) of A (Excellent) fell from 12% on May 31, 2011, to 9% a year later, although in absolute terms it remained constant. In both years, three companies have maintained this rating: Abu Dhabi National Insurance Co., Arab Orient Insurance Co. and Oman Insurance Co., which are all domiciled in the UAE.
In general, FSRs and issuer credit ratings have remained unchanged over the 12-month period, indicative of the challenging operating environment stemming from the global slowdown of financial markets and the Arab Spring. However, outlooks on some companies have been revised downward to stable or negative.
To access the full briefing, please visit www.ambest.com/press/060801menabriefing.pdf.
A.M. Best Europe – Rating Services Limited is a subsidiary of A.M. Best Company. Founded in 1899, A.M. Best Company is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
Copyright © 2012 by A.M. Best Company, Inc. ALL RIGHTS RESERVED.
Contacts
A.M. Best Co.
Yvette Essen, +(44) 20 7626 6264
Director, Industry Research,
Europe & Emerging Markets
yvette.essen
or
Rachelle Morrow, +(1) 908-439-2200, ext. 5378
Senior Manager, Public Relations
rachelle.morrow
or
Jim Peavy, +(1) 908-439-2200, ext. 5644
Assistant Vice President, Public Relations
james.peavy
.
